Item 5. Fees and Compensation
Information on Fees
The maximum annual fee for BWFM’s investment management services, based on the market value
of the client’s account at the end of the previous calendar quarter, is 150 basis points. Fees are
negotiable based on size and nature of the portfolio. Some clients pay a fixed fee for investment
management services. Client fees are memorialized in each client’s investment advisory agreement.
There is a minimum advisory fee of $1,250 per quarter for services rendered by BWFM. The
minimum advisory fee may be waived, and fees may be lower or waived at the discretion of BWFM.
Clients are billed in advance (at the beginning) of each calendar quarter based upon the quarter-end
values of the clients’ account during the previous quarter. BWFM does not charge performance
based fees on client accounts. (Related clients’ accounts may be aggregated for purposes of
calculating fees.
The fee for the calendar quarter in which the investment advisory agreement becomes effective (as
of the date the contract was signed) will be prorated for the number of days remaining in the quarter.
For purposes of calculating fees, the assets of each client will be aggregated to determine the overall
fee percentage. On an exception basis, BWFM may not charge fees on a portion of a client’s cash
balance held in an investment portfolio.
For some clients, if a single contribution greater than $150,000 is made during the quarter, BWFM
reserves the right to bill the client for a pro-rata portion of the contributed assets to the investment
account. Clients will be provided with a pro-rata refund when clients withdraw funds greater than
$150,000 in a single instance from the investment account during a calendar quarter.
In some instances, precise account balances are unavailable to BWFM on a timely basis. BWFM’s
billing in those situations is therefore based on the most current information available when fees are
calculated.
The fees charged by BWFM are in addition to the fees charged by recommended Investment
Managers in which a client’s portfolio is invested. A description of these Investment Manager fees
is available in each mutual fund’s prospectus and private investment fund’s and investment
manager’s disclosure documents. Similarly, BWFM’s fees are in addition to the fees and expenses
charged by mutual funds and private investment funds which may be purchased by a recommended
Investment Manager. A description of these fees and expenses is available in each fund’s prospectus
and disclosure document. Clients are also separately responsible for any custodial fees charged on
their advisory accounts.
Investments recommended or utilized as part of the 401(k) and deferred compensation plan advisory
services described above (e.g., mutual funds or similar vehicles) are often subject to initial and on-
going expenses and fees described in the applicable offering document for any such investment.
Any such expenses and fees would be in addition to BWFM’s fees.
A client could invest with independent investment managers directly, without the services and
investment oversight of BWFM. While incurring lower fees, the client would not receive the
services provided by BWFM which are designed, among other things, to assist the client in
determining which investments are most appropriate to each client’s financial condition and
objectives. Accordingly, the client should consider the fees and expenses incurred by investing with
the recommended investment managers, in addition to advisory fees charged by BWFM to fully
understand the total amount of fees to be paid by the client and to thereby evaluate the advisory
services being provided.
Clients will also incur brokerage and other transaction costs, as further described in Item 12 -
Brokerage Practices below.
BWFM does not independently value any private securities held in client accounts. BWFM relies
on the quarterly financial information provided by the private funds themselves will be used as the
basis for client reporting and fee billing (where a client pays an asset-based fee).
For marketable securities, the prices provided by custodians are used for client reporting and fee
billing.
Termination
A client’s agreement may be terminated at the end of any month following thirty days’ prior written
notice from the terminating party to the other party. Upon termination of any account, any prepaid,
unearned fees will be promptly refunded.
Financial Planning Services
Clients may pay a negotiable annual fee in addition to their investment advisory fee to BWFM for
Financial Planning Services, on a case by case basis. This fee includes a complete financial plan,
on-going development as well as unlimited e-mail communication and in-person meetings as
required over a one-year period.